Major Averages Move Back To The Downside In Early Trading

(RTTNews) - Stocks have moved moderately lower in early trading on Tuesday, partly offsetting the strength seen in the previous session. The major averages have all moved to the downside, although selling pressure has remained somewhat subdued.

The early weakness on Wall Street partly reflects concerns about the outlook for monetary policy following the release of some upbeat U.S. economic data.

The Institute for Supply Management recently released a report showing that its non-manufacturing index climbed to 58.7 in July from 56.0 in June, with a reading above 50 indicating growth in the service sector. Economists had been expecting the index to edge up to a reading of 56.5.

While the data points to an upbeat economic outlook, it also fuels speculation that the Federal Reserve may raise interest rates sooner than anticipated.

Nonetheless, traders seem somewhat reluctant to make any significant moves, limiting the downside for the broader markets.

Most of the major sectors are showing only modest moves, although some weakness is visible among oil service, gold, and steel stocks.

The major averages have climbed well off their lows for the young session but currently remain stuck in the red. The Dow is down 47.30 points or 0.3 percent at 16,521.98, the Nasdaq is down 13.48 points or 0.3 percent at 4,370.41 and the S&P 500 is down 6.77 points or 0.4 percent at 1,932.22.